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Which Type of Automated Bidding Strategy Is Enhanced Cost-Per-Click (ECPC)?

In this article, we’ll dive into the technicalities of ECPC.

Fatjon Kabashi

Head of Social Media

Which Type of Automated Bidding Strategy Is Enhanced Cost-Per-Click (ECPC)?

Pay-per-click (PPC) campaigns require a lot of work to launch and maintain. For best outcomes, ongoing bid adjustments and monitoring are essential after the initial setup. Have you ever wished that Google could manage your bids and choose the best course of action on your behalf?

 

With Google Ads, you can now manage bids automatically rather than manually with enhanced cost per click (ECPC). But what exactly is ECPC, and is it a valuable addition to your PPC campaign? In this article, we’ll dive into the technicalities of ECPC, exploring its functionality and advising you on how to implement it effectively.

Understanding Enhanced Cost-Per-Click

Enhanced cost-per-click (ECPC) emerges as a game-changer, propelling your campaigns beyond the confines of manual bidding. This dynamic approach works by automatically modifying your manual bids to focus on clicks that are more likely to result in website conversions or sales. 

 

ECPC adopts a different strategy from Target CPA and Target ROAS Smart Bidding, which rely on predetermined cost per conversion and return on ad spend targets. It optimizes for conversions and works to keep your average cost per click (CPC) below the maximum CPC you’ve set, including bid adjustments.

 

When it comes to Search, Display, and Hotel campaigns, ECPC acts as a stimulant to boost conversions by maintaining your cost-per-conversion at a level that is similar to manual bidding. 

 

Meanwhile, for Shopping campaigns, ECPC excels in elevating conversions while guaranteeing a balance in overall spending. The ability to optimize for conversion value gives you even more flexibility in terms of prioritizing high-value conversions and giving specific conversion actions the right amount of weight. Campaigns for searches and purchases can both benefit from this advanced optimization.

 

Learn more about ECPC’s workings and how it can help you get more out of your advertising budget. As we’ve already discussed, ECPC offers a subtle balance between automation and manual control, so it fits right into your PPC strategy.

How Conversion Tracking Works With ECPC

Before diving into the nuances of conversion tracking when combined with Enhanced Cost-Per-Click (ECPC), it is essential to understand how the Google Ads system functions. This system compares click and conversion patterns with your past data, carefully examining each one. 

 

Through the identification of particular locations that are associated with increased sales, the system continuously improves its understanding and, when combined with conversion tracking, maximizes performance.

 

Conversion tracking and ECPC work in tandem to provide the best possible results for your advertising campaigns. By using conversion tracking, you can align your bids with the locations and actions that produce the best results, ensuring a more sophisticated and knowledgeable approach to bid adjustments. 

 

With ECPC conversion tracking, you can optimize your approach for maximum impact by identifying user behavior patterns that result in conversions or identifying geographic areas that generate significant sales.

 

However, the effectiveness of conversion tracking hinges on the precision of your counting method for each conversion action. It’s essential to conduct a thorough review to guarantee alignment with your specific goals. 

 

For instance, if you’re tracking leads, such as sign-ups, a judicious approach might involve counting only one conversion per ad click. Conversely, if your focus is on tracking sales, a comprehensive counting method that registers every conversion may be more suitable.

 

By customizing your conversion counting method in tandem with your campaign objectives, you ensure that the insights derived from ECPC are not only accurate but also tailored to your unique business goals. This meticulous approach to conversion tracking serves as the linchpin for unlocking the full potential of ECPC, allowing you to make informed decisions and amplify the effectiveness of your advertising efforts.

How PPC Bidding Works

Before delving into ECPC, it’s crucial to comprehend PPC bidding. When bidding on a keyword in Google Ads, you specify the maximum cost per click (CPC) you’re willing to pay to display ads for that keyword. Enhanced CPC takes this a step further by automatically adjusting your CPC based on ad performance, aligning with your campaign goals and priorities.

The Mechanism Behind Enhanced Cost Per Click

ECPC aims to enhance the overall effectiveness of your PPC endeavors by automatically adjusting your bids in response to observed campaign trends. To leverage ECPC successfully, activate conversion tracking, as it plays an importantl role in bid adjustments. 

 

Google Ads identifies high-converting keywords and increases bids for them, maximizing ad effectiveness and overall revenue. Conversely, bids for keywords with lower conversion rates are reduced.

 

For instance, if your company for animal control, targets keywords like “animal control services” and “wildlife services,” ECPC monitors their performance. 

 

If “animal control services” drives high-quality conversions, the bid is increased, while a keyword like “wildlife services” with a higher bounce rate sees a bid reduction. This showcases ECPC in action, utilizing recent ad performance trends to automate bid adjustments.

Is ECPC the Right Choice for Your Campaign?

The question arises: Is ECPC the right choice for your campaign? On one hand, ECPC simplifies your role by allowing you to set an initial bid while Google takes care of the rest. Yet, some businesses hesitate to entrust bid management to algorithms, fearing potential overbidding.

 

However, compared to fully automated options, ECPC is a relatively controlled choice. You retain control over initial bids, with the flexibility to adjust them manually or deactivate ECPC whenever needed. The decision to use ECPC ultimately rests on your comfort level with Google handling bid adjustments.

How To Set Up Enhanced CPC for Your Campaign

If you’re ready to implement enhanced cost per click in your campaigns, the process is straightforward. Ensure conversion tracking is active and your campaign has generated at least 15 conversions for sufficient data. Follow these steps to enable ECPC:

  • Sign in to Google Ads.
  • Navigate to Campaigns and select your desired campaign.
  • Access Settings in the page menu.
  • Click on Bidding and choose Change bid strategy.
  • Opt for Manual CPC from the drop-down menu.
  • Enable Enhanced CPC.
  • Save and exit.

 

Repeat this process for each campaign where ECPC is desired. With these steps completed, Google will automatically adjust your bids based on the initial bid you set for each campaign.

Final Thoughts

By striking a balance between the accuracy of manual control and the effectiveness of automation, ECPC proves to be a flexible instrument for marketers looking to maximise the effectiveness of their ad budgets and optimize conversions. Embracing ECPC indicates a willingness to adapt to advanced bidding strategies. ECPC provides a detailed solution that fits a variety of campaign goals, regardless of whether you value manual control above all else or believe in Google’s algorithmic might. As you embark on your PPC adventure, keep in mind that the thoughtful incorporation of ECPC will be an essential factor in successfully navigating the pay-per-click landscape in the future.

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